Answer complete question with workings, please answer in text form Reciprocal MethodEilers Company has two producing departments and two support departments. The following budgeted data pertain to these four departments:ProducingDepartmentsDirect overheadSquare footageNumber ofreceiving ordersDirect laborhoursRequired:1. Allocate the overhead costs of the support departments to the producing departments using the reciprocal method. (Round allocation ratios to two decimal places. Round allocated costs to the nearest dollar. If an amount is zero, enter "0".)Allocation ratios:Square footageNumber ofreceiving ordersAllocations:Directoverhead.costGeneralFactoryReceivingTotalSupport DepartmentsGeneralFactory Receiving Assembly Finishing$400,000 $170,000 $45,000 $75,0005,400 5,4002,7001,680. 1,020AssemblyFinishing300GeneralFactoryGeneralFactory0✔0.1 ✓-425,5✔25,51 ✔$400,0✓ 170,0 $45,00 ✓0 $Receiving Assembly Finishing0.2 ✓ 0.4 ✓ 0.4✔0 0.56✔ 0.34 ✔Receiving Assembly Finishing85,10 ✔-255,1✔025,00014 x per direct.labor hour40,000$per direct laborhour2. Using direct labor hours, compute departmental overhead rates. (Round to the nearest cent.)Overhead Rate75,00✔160,0 X

Lets understand the basics.Reciprocal method of allocation: Reciprocal method of allocation…

Support Departments General Factory Receiving Assembly Finishing merhead $400,000 $170,000 $45,000 $75,000 5,400 5,400 ootage 2,700 of 1,680 1,020 orders bor 300 ootage of orders d: te the overhead costs of the support departments to the producing departments using the reciprocal method. (Round allocation ratios to two decimal places. Round allocated cos on ratios: Producing Departments 0✓ General Receiving Assembly Finishing Factory 0.1 ✔ 25,000 40,000 0.2✔ 0.4 ✓ 0.4 0✓ 0.56 ✔ 0.34

Support Departments General Factory Receiving Assembly Finishing merhead $400,000 $170,000 $45,000 $75,000 5,400 5,400 ootage 2,700 of 1,680 1,020 orders bor 300 ootage of orders d: te the overhead costs of the support departments to the producing departments using the reciprocal method. (Round allocation ratios to two decimal places. Round allocated cos on ratios: Producing Departments 0✓ General Receiving Assembly Finishing Factory 0.1 ✔ 25,000 40,000 0.2✔ 0.4 ✓ 0.4 0✓ 0.56 ✔ 0.34

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter7: Allocating Costs Of Support Departments And Joint Products

Section: Chapter Questions

Problem 23E: Refer to the data in Exercise 7.22. The company has decided to simplify its method of allocating...

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Refer to the data in Exercise 7.22. The company has decided to simplify its method of allocating support service costs by switching to the direct method. Required: 1. Allocate the costs of the support departments to the producing departments using the direct method. (Round allocation ratios to four significant digits. Round allocated costs to the nearest dollar.) 2. Using direct labor hours, compute departmental overhead rates. (Round to the nearest cent.)
Cynthia Rogers, the cost accountant for Sanford Manufacturing, is preparing a management report that must include an allocation of overhead. The budgeted overhead for each department and the data for one job are as follows: Using the departmental overhead application rates, and allocating overhead on the basis of direct labor hours, overhead applied to Job 231 in the Tooling Department would be: a. 44.00. b. 197.50. c. 241.50. d. 501.00.
Refer to the data in Exercise 7.20. The company has decided to use the sequential method of allocation instead of the direct method. The support departments are ranked in order of highest cost to lowest cost. Required: 1. Allocate the overhead costs to the producing departments using the sequential method. (Take allocation ratios out to four significant digits. Round allocated costs to the nearest dollar.) 2. Using machine hours, compute departmental overhead rates. (Round the overhead rates to the nearest cent.)
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Eilers Company has two producing departments and two support departments. The following budgeted data pertain to these four departments: Required:1. Allocate the overhead costs of the support departments to the producing departments using the reciprocal method. (Round allocation ratios to four significant digits. Round allocated costs to the nearest dollar.)2. Using direct labor hours, compute departmental overhead rates. (Round to the nearest cent.)
A company uses activity-based costing to determine the costs of its three products: A, B, and C. The budgeted cost and activity for each of the company's three activity cost pools are shown in the following table: Budgeted Activity Budgeted Activity Cost Pool Cost Product A Product B Product C Activity 1 $70,000 6,000 9,000 Activity 2 $45,000 7,000 15,000 Activity 3 $82,000 2,500 1,000 What are the activity rates for the three activities under activity based costing? O (1) $2.00; (2) $3.00; (3) $3.50. O (1) $3.50; (2) $1.50; (3) $32,80. O (1) $3.50; (2) $3.00; (3) $16.00. O (1) $2.00; (2) $1.50; (3) $16.00. O (1) $2.00; (2) $1.50; (3) $32.80. Question 9 F2 F7 -0- 2 F3 O+ # 3 F4 BJ LA $ 4 F5 N F6 % 5 6 20,000 8,000 1,625 F8 $ & 7 F9
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Manhattan Partners provides management consulting services to government and corporate clients. Manhattan has two support departments administrative services (AS) and information systems (IS)-and two operating departments-government consulting (GOVT) and corporate consulting (CORP). For the first quarter of 2017, Manhattan's cost records indicate the following: (Click the icon to view the cost records.) Read the requirements. Requirement 1a. Allocate the two support departments' costs to the two operating departments using the direct method. (Do not round intermediary calculations and round your final answers to the nearest whole. dollar. Use parentheses or a minus sign when decreasing departments by allocating costs. Enter a "0" for any zero balances.) Operating Departments Support Departments AS GOVT CORP Direct Method Budgeted overhead costs before interdepartment cost allocations Allocation of AS costs Budgeted overhead costs before any interdepartment cost allocations Support work…
1. Logo Inc. has two data services departments (Systems and Facilities) that provide support to the company's three production departments (Machining, Assembly, and Finishing). The overhead costs of the Systems Department are allocated to other departments on the basis of computer usage hours. The overhead costs of the Facilities Department are allocated based on square feet occupied (in thousands). Other information pertaining to Logo is as follows. Department Overhead Computer Usage Hours Square Feet Occupied Systems Facilities $200,000 300 1,000 100,000 900 600 Machining Assembly Finishing Totals 400,000 3,600 2,000 550,000 1,800 3,000 620,000 2,700 5,000 9,300 11,600
Requirement 3. Calculate the budgeted unit cost of basic and deluxe trophies if Acclaim allocates overhead costs in each department using activity-based costing, where setup costs are allocated based on number of batches and general overhead costs for each department are allocated based on direct manufacturing labor costs of each department. Begin by calculating the budgeted setup rate for the forming department. First select the formula, then enter the applicable amounts and calculate the rate. (Round your answer to the nearest cent. Abbreviations used: DC - Direct cost, DL = Direct labor, $ = dollar.) Budgeted setup costs ÷ = Budgeted setup rate Forming ÷ =